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08/12/2011

Verizon To Compete In Connected TV Industry

A tele-communications firm plan to launch a standalone service allowing customers to stream movies and television shows over the Web – entering them in competition with OTT players.
According to a report from Rueters, Verizon Communications has plans to launch the service and is in talks with prospective programming partners – a move which will see the communication company compete with the likes of Netflix and the traditional cable TV business.
It is understood that the connected TV service would be introduced outside of markets where it currently offers its FiOS, broadband and TV package. This would cover some 85 million households.
Indeed it means another player entering the connected TV market with result possibly leading to cable providers and other streaming services having to lower prices to keep customers.
If Verizon launch the service it would to be able to grow its customer base and thereby lower its programming costs on a per subscriber basis.
This comes at a time when Microsoft has announced a major update to its Xbox 360 which will see the games console morph into a general entertainment hub.
The free update to the Xbox 360 games console will bring new catch-up TV services and integrated voice control to around 35 million users.
Meanwhile Netflix announced last month that they would bring an online subscription service to the UK and Ireland in 2012 thus starting more negotiations in a small but competitive and rapidly growing market.
(LB)
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